Common use of EXTRA-CONTRACTUAL DAMAGES Clause in Contracts

EXTRA-CONTRACTUAL DAMAGES. In no event shall the Reinsurer participate in punitive, compensatory, or bad faith damages as described below, which are awarded against the Company as a result of an act, omission or course of conduct committed solely by the Company in connection with the insurance reinsured under this Agreement. The Reinsurer shall, however, pay its share of statutory penalties awarded against the Company in connection with insurance reinsured under this Agreement if the Reinsurer elected to join in the contest of the coverage in question. The parties recognize that circumstances may arise in which equity would require the Reinsurer, to the extent permitted by law, to share proportionately in certain assessed damages. Such circumstances are difficult to define in advance, but generally would be those situations in which the Reinsurer was an active party and consented to the act, omission or course of conduct of the Company, which directly results in the assessment of punitive and/or compensatory damages. In such situations, the Company and the Reinsurer shall share such damages so assessed, in equitable proportions. For the purposes of this provision, the following definitions shall apply:

EXTRA-CONTRACTUAL DAMAGES. In no event shall the Reinsurer participate in punitive, compensatory, or bad faith damages as described below, which are awarded against the Company as a result of an act, omission or course of conduct committed solely by the Company in connection with the insurance reinsured under this Agreement. The Reinsurer shall, however, pay its share of statutory penalties awarded against the Company in connection with insurance reinsured under this Agreement if the Reinsurer elected to join in the contest of the coverage in question. The parties recognize that circumstances may arise in which equity would require the Reinsurer, to the extent permitted by law, law to share proportionately in certain assessed damages. Such circumstances are difficult to define in advance, but generally would be those situations in which the Reinsurer was an active party and consented in writing to the act, omission or course of conduct action of the Company, which directly results in the assessment of punitive and/or compensatory damages. In such situations, the Company and the Reinsurer shall share such damages so assessed, in equitable proportions. For the purposes of this provision, the following definitions shall apply:

EXTRA-CONTRACTUAL DAMAGES. In no event shall the Reinsurer participate in punitivePunitive Damages, compensatoryCompensatory Damages, or bad faith damages as described below, which Bad Faith Damages that are awarded against the Company as a result of an act, omission or course of or conduct committed solely by the Company in connection with the insurance reinsured under this AgreementCovered Policies. The Reinsurer shall, however, pay its share of statutory penalties Statutory Penalties awarded against the Company in connection with insurance reinsured under this Agreement if the Reinsurer elected to join in the contest of the coverage in question. The parties recognize that circumstances may arise in which equity would require the Reinsurer, to the extent permitted by law, to share proportionately proportionally in certain assessed damages. Such circumstances are difficult to define in advance, but generally would be those situations in which the Reinsurer was an active party and or consented to the act, omission or course of or conduct of the Company, which directly results in the assessment of punitive and/or compensatory damagesPunitive Damages, Compensatory Damages, or Bad Faith Damages. In such situations, the Company and the Reinsurer shall share such damages so assessed, in equitable proportions. For the purposes of this provision, the following definitions shall apply:.

EXTRA-CONTRACTUAL DAMAGES. In no event shall the Reinsurer participate in punitivePunitive Damages, compensatoryCompensatory Damages, or bad faith damages as described below, which Bad Faith Damages that are awarded against the Company as a result of an act, omission or course of or conduct committed solely by the Company in connection with the insurance reinsured under this AgreementCovered Policies. The Reinsurer shall, however, pay its share of statutory penalties Statutory Penalties awarded against the Company in connection with insurance reinsured under this Agreement if the Reinsurer elected to join in the contest of the coverage in question. The parties recognize that circumstances may arise in which equity would require the Reinsurer, to the extent permitted by law, to share proportionately proportionally in certain assessed damages. Such circumstances are difficult to define in advance, but generally would be those situations in which the Reinsurer was an active party or consented in advance and consented in writing to the act, omission or course of or conduct of the Company, which directly results in the assessment of punitive and/or compensatory damagesPunitive Damages, Compensatory Damages, or Bad Faith Damages. In such situations, the Company and the Reinsurer shall share such damages so assessed, in equitable proportions. For the purposes of this provision, the following definitions shall apply:.

EXTRA-CONTRACTUAL DAMAGES. In no event shall the The Reinsurer will not participate in punitive, compensatory, punitive or bad faith compensatory damages as described below, which that are awarded against the Ceding Company as a result of an act, omission or course of conduct committed solely by the Company Ceding Company, its agent, or representatives in connection with the insurance reinsured claims covered under this Agreement. The Reinsurer shallwill, however, pay its share of statutory penalties awarded against the Ceding Company in connection with insurance reinsured claims covered under this Agreement if the Reinsurer elected to join has joined in the contest of the coverage in question. The parties recognize that circumstances may arise in which equity would require the Reinsurer, Reinsurer to the extent permitted by law, to share proportionately in certain assessed punitive and compensatory damages. Such circumstances are difficult to define in advance, but would generally would be those situations in which the Reinsurer was an active party party, and in writing, recommended, consented to to, or ratified the act, omission act or course of conduct of the Company, which directly results Ceding Company that ultimately resulted in the assessment of punitive and/or compensatory the extra-contractual damages. In such situations, the Company Reinsurer and the Reinsurer shall Ceding Company will share such damages so assessed, in equitable proportions. For the purposes of this provisionArticle, the following definitions shall will apply: